EPC – The metric that could predict your success

There are a number of statistics or metrics you should know about your online business. One of the most important is called the Earnings Per Click (EPC). This tells you how much money you make for each unique visitor (‘click’) to reach your website or sales funnel.

To calculate your EPC for a product you need to be measuring the amount of traffic to your site and how many of those visitors buy your product or service (i.e. your conversion rate).

You work out the EPC as follows:

EPC = (Product Price x Conversion Rate) Divided By Amount of Traffic

Let’s take a look at an example to see how this works. Imagine you are selling a product for $10 and for every 100 visitors to your sales page you make 14 sales on average. This means your conversion rate is 14%.

So for every 100 visitors you make

($10 x 14 sales) = $140.

To work out your EPC you divide the amount of money you make by the 100 visitors it took to get the sales:

$140 / 100 = $1.40

The higher your EPC the better. You’ll make more money for a set amount of traffic, but this is not the real reason EPC can predict your success. EPC becomes much more relevant and powerful if you want to persuade affiliates to drive traffic to your sales page.

An affiliate will be looking to make money too. They’ll be looking for two things. A good quality product they can ethically promote, so there’s less chance of refunds, and a good EPC. If they are going to spend their time and effort promoting products they’re going to want to promote those that give them the best return, i.e. those that make them the most for each click they send to someone’s website.

If you want to make sales you’ll need lots of traffic to your sales page. One way to get that is to enlist the help of affiliates, and to do that you’ll need a good EPC. That’s why this metric can predict your success.

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